Housing Tax Credit Set To Expire

Posted by Joe Manausa on Friday, March 5th, 2010 at 1:36pm.

The Housing Tax Credit is set to expire and WILL NOT BE EXTENDED says Richard Smith, CEO of the Cartus Real Estate Network.

Picture of Homebuyer Tax Credit ExtensionThe Housing Tax Credit is set to expire on April 30th, 2010. Perhaps the most often asked question at the Tallahassee Real Estate Blog is "do you think the tax credit is going to be extended again." Since this question is based upon politics, it's not really something we can determine with "charts, graphs and analysis!"

Fortunately, there are other ways to forecast political moves that affect the housing market. For those of you who read the blog that I posted two days ago about attending the Cartus Real Estate Network Annual Conference in Palm Desert, California, you know that I am in the company of some of the most influential real estate leaders in the world.

So, rather than ask me this question, it is much better suited for Richard Smith, CEO of Cartus. Mr. Smith was a very important player in the initial lobbying of Congress to pass legislation to provide stimulus for both mortgage rate reductions as well as the housing tax credit, so he is as good a person to advise us on the future of the homebuyer tax credit as anybody.

Richard Smith told us that the “deal” with Congress was that they would only approve the extension to the housing tax credit (last time) if the leaders in the housing industry assured them that they would not be coming back asking for more. It was agreed that unless the economy was still in the tank, the extension of the homebuyer tax credit through April 2010 would be sufficient to restart the housing market.

Thus, he believes the Homebuyer Tax Credit WILL NOT BE EXTENDED after the April 30th deadline!

Homebuyer Beware – Last Second Contracts Are Not Best Bet

Something many buyers might not have considered is that should they wait until the last second, they could very easily turn a buyers’ market situation into a sellers’ market situation. Think about this ...

Let’s say a homebuyer puts a house under contract on April 30th, just in time to qualify for the housing tax credit. Somewhere around May 7th they get their home inspection report, full of small items that most home sellers are having to fix right now (it is a buyers’ market…). However, a smart home seller will know that they can tell the buyer “no” to fixing these items, and the buyer will be trapped. The prudent home seller will know the buyer has more to lose by walking from the deal than they do by paying for the minor repairs themselves.

So if you are a current home buyer, get under contract with enough time to inspect the home and provide requests to sellers prior to April 30th, and you will still have enough time to walk away from the deal and get another home under contract. This ability to walk might be just the negotiating leverage you need to get an excellent deal in a historic buyers’ market.

Great Tallahassee Real Estate Resources

Do you want to know more about the Tallahassee real estate market? It is not as hard as you might think keeping up with the movements in the housing market, you just have to know where to look. The following are some of the best resources that you can find on Tallahassee real estate:

Joe Manausa, MBA is a 24 year veteran of real estate brokerage in the State of Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.

5 Responses to "Housing Tax Credit Set To Expire"

Lisa Galocy wrote: Hi Joe,

http://www.manausa.com/housing-tax-credit-set-to-expire/
to
http://www.manausa.com/inventory-02-2010 does not work. Thought you would want to know.

Lisa

Posted on Sunday, March 7th, 2010 at 12:55pm.

Joe Manausa, MBA wrote: Thank you Lisa, I think I got it fixed.

Posted on Monday, March 8th, 2010 at 12:00am.

Income Tax Credit Is Fading Away wrote: [...][...] been doing a whole lot of reading this week, scouring the internet for any signs of change in the Homebuyer Income Tax Credit and have not seen anything that appears to be relevant. Many of our buyers want to know our opinion [...][...]

Posted on Friday, April 9th, 2010 at 11:35am.

Real Estate Wrong Question wrote: [...][...] coast, trying to figure out how much of the market improvement has been impacted by the soon-ending Homebuyer Tax Credit. Bill Fulton from Orlando [...][...]

Posted on Monday, April 12th, 2010 at 11:36am.

Housing Market Fix wrote: [...][...] marks the end of the Homebuyer Tax Credit for people who still want to take advantage of the stimulus money that the government felt would [...][...]

Posted on Friday, April 30th, 2010 at 12:02pm.

Leave a Comment